SUPERVALU Inc. (SVU)

It's not a 2-for-1 split, Supervalu (SVU) actually trades 47% lower after bombing with its earnings report. Sell-side analysts are taking a beating in the Twittersphere after the retailer's free cash flow yield and M&A potential stoked positive comments over the last few months, while (as expected) collateral damage in the sector is playing out. SWY-9.0%, KR-3.3%, WFM-1.2%, DEG-2.7%, HTSI-1.6%.

More from Supervalu (SVU): After the big earnings miss, the company suspends the dividend and announces a strategic review of "alternatives for our business." "We will be pursuing deeper and more structural cost savings. we are adopting more flexible financing facilities," says CEO Craig Herkert. Shares -21% AH. (PR)

Pfizer (PFE-0.8%) faces a lawsuit from a group of grumpy drugstores and grocery chains that allege the company conspired with India's Ranbaxy Laboratories to purposefully delay sales of generic versions of Lipitor. Seeking a payday: KR, WAG, SVU, SWY, and privately-held HEB Grocery.

Barclays analyst Meredith Adler still sees Supervalu (SVU) as the most attractive buyout target in the sector despite its recent runup in shares. Her analysis suggests that a buyer could snap up Supervalu at over $6 a share and still earn a 40% return even in the face of sluggish same-store sales at the grocery store chain.

Supervalu (SVU+5.5%) stands as the biggest gainer of the S&P MidCap 400 Index with talk about a leveraged buyout still percolating. An enticing feature for SVU investors waiting for a LBO is the lush dividend yield of 7.3%, which stands a chance of staying elevated with the company flush with cash.

Even brides-to-be are pinching pennies in this economy, according to a report from MarketWatch. Shopping trends reveal that grocery stores such as Supervalu (SVU), Kroger (KR), and Safeway (SWY) are shoring up their lineup of wedding cakes, with sales up close to 5% and the number of bakeries dwindling. Also of note for those looking for a more grounded economic indicator, spending on weddings still sits below pre-recession levels.

Shares of Supervalu (SVU+7.1%) shoot up on heavy volume as M&A chatter continues to swirl about. The grocery store operator is catching up to rivals with its private-label products and boasts a free cash flow yield of 45% - more than 10X times the average mark for U.S. food retailers.

Supervalu (SVU+1.7%) could attract a buyout after its share price fell to a 30-year low this week, according to Barclays. On the plus side, the company is expected to turn a profit for the first time in three years and boasts the industry’s highest free cash flow yield, but the downer is that its debt is 7X its market cap.

Goldman analyst Stephen Grambling kicks Supervalu (SVU-3.75% to $5.91) while it's down, starting coverage of the struggling supermarket chain with a sell rating and giving it a 12-month target of $5. Grambling expects gross margin and free cash flow to remain under pressure, and that the company will struggle to grow volumes.

Shares of SuperValu (SVU-1.5%) trail off after Jim Cramer claims "everybody hates it" on last night's Mad Money lightning round. Apparently, everybody doesn't include analysts with Jefferies who were out with positive comments only two days ago. SVU -25.5% YTD.

SUPERVALU Inc operates as a wholesale distributor to independent retail customers in the United States. Its food retail stores are operated under various banners, including Acme Markets, Jewel-Osco, Shaw's Supermarkets, Star Markets and the Albertsons.